The rupee plunged to an all-time low of 82.33 against the US dollar in early trade on Friday as risk-averse sentiment among investors impacted the local unit. The Indian currency depreciated 16 paise after a negative trend in domestic equities and elevated crude oil prices sapped investor appetite, said forex traders, according to news agency PTI.
The rupee opened at 82.19 against the greenback and depreciated 16 paise to touch 82.33 over its previous close at the interbank foreign exchange, reported news agency PTI.
On Thursday, the currency hit below the 82 levels against the greenback for the first time. It fell 55 paise to close at a record low of 82.17 against the US currency.
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The rise in crude prices coupled with concerns about trade deficit is impacting the rupee. "An uptick in crude prices has caused concerns around the trade deficit to resurface. US rates staying higher for longer is not helping the capital account," said IFA Global Research Academy, as per the agency.
Apart from this, the Reserve Bank of India is conservative in its approach towards spending reserves, it said, adding that these factors are causing the rupee to adjust.
On the other hand, the dollar index, which gauges the greenback's strength against a basket of six currencies, was trading 0.14 per cent down at 112.10.
Global oil benchmark Brent crude futures declined 0.10 per cent to $94.33 per barrel.
On the domestic equity market front, the 30-share BSE Sensex was trading 111.83 points or 0.19 per cent lower at 58,110.27, while the broader NSE Nifty fell 38.00 points or 0.22 per cent to 17,293.80.
Foreign institutional investors were net buyers in the capital market on Thursday as they purchased shares worth Rs 279.01 crore, as per exchange data.